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Price hikes hit low-income earners: report

Rising prices over the past 10 years in areas like power and water have hit low income earners harder, according to a report by SACOSS.

The rising cost of living over the past decade has hit low-income families harder with big increases to essential services such as power and water, a report has found.

At the same time, the cost of some consumer goods, including TVs and computers has fallen significantly, the South Australian Council of Social Service says.

In its latest cost of living update, the council looked at what prices and costs had gone up and down over the past 10 years.

It found tobacco prices had climbed 150 per cent while the cost of gas had jumped 111 per cent and electricity 78 per cent.

Other big increases included water prices up by 95 per cent, property rates and charges up by 81 per cent, medical expenses up by 76 per cent and education costs up by 66 per cent.

The falls included audio-visual and computer equipment by almost 50 per cent, clothing prices by 13 per cent and communication prices by 1.6 per cent.

SACOSS executive director Ross Womersley said the report showed that the rising cost of living did not affect everyone equally.

"That is particularly the case with utilities where price increases impact more on low-income households because they spend proportionately more on those goods and services," he said.

Mr Womersley said the report was another blow for households living on inadequate welfare and other support payments.

Wage and salary households also faced cost of living pressures but with some consumer items falling, their purchasing power was about the same as it was a decade ago, SACOSS said.

KEY PRICES RISES AND FALLS OVER PAST DECADE:

FALLS:

Audio, visual and computer equipment -49.4 per cent

Clothing -12.9

Household appliances and tools -5.7

Communication costs -1.6

INCREASES:

Tobacco 150.2 per cent

Gas 111.3

Water 95.0

Medical and dental expenses 75.9

Education 66.4

Source: South Australian Council of Social Service.


2 min read

Published

Updated

Source: AAP



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